iShares plans new investment-grade corporate multi-sector term funds

By Toni Weeks

San Diego, Jan. 18 - iShares Trust will offer four new exchange-traded funds that focus on investment-grade corporate debt, according to separate N-1A filings with the Securities and Exchange Commission.

The iShares 2016 Investment Grade Corporate Multi-Sector Bond ETF, the iShares 2018 Investment Grade Corporate Multi-Sector Bond ETF, the iShares 2020 Investment Grade Corporate Multi-Sector Bond ETF and the iShares 2023 Investment Grade Corporate Multi-Sector Bond ETF are each considered a "fund of funds" and will invest primarily in the securities of underlying funds. Those funds themselves seek investment results corresponding to underlying indexes.

The underlying indexes have not yet been disclosed, but all will be comprised of dollar-denominated, taxable, investment-grade corporate bonds. Each fund generally invests at least 80% of its assets in the securities of its applicable underlying index.

The securities within each underlying index will mature during the last year of the applicable fund and will terminate in March of its final year, at which time its assets will be distributed to investors.

Securities within an index may be issued by both U.S. and non-U.S. issuers and must have an outstanding face value of at least $250 million at time of inclusion.

Management fees and ticker symbols have not yet been set.

San Francisco-based BlackRock Fund Advisors will act as the investment adviser to the funds.

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